For all the dolts on cnbc who think this will only affect Texas and North Dakota, they will be shocked to find that the only thing going for the US economy for seven years was the oil and gas industries.Banking, housing, car sales etc. will all be affected. Obama is killing these industries by promoting Iran’s oil industry in a time of glut and no growth. Mission accomplished for that Muslim lover.
The oil bubble. Take a nice road trip while you still can.
But everyone saves $25 dollars when they fill their car.... so it’s like an economic windfall for our country.... /s
This is a normal boom and bust cycle for a new industry — the shale oil industry boomed and now its going through a shake out. Loans will need to be worked out. All the people who moved to the Dakotas to get in on the boom will now have to look for other work. Then the industry will rationalize itself and the strong players will emerge when oil prices go back up. As painful as it is, its healthy for the economy. The government needs to stay out of it.
A floating tariff that would stabilize oil at $40.00 bbl would make sense. Right now that would be about $25.00 per imported bbl. When the price per bbl goes above $40.00 then the tariffs would go away. This would protect American jobs, stabilize the oil industry and throw a wrench into OPECs desire to crush American oil infrastructure. This would also help balance the budget.